Tamilnad Mercantile Bank delivered robust business performance in the quarter ended June 30, with total business rising 23% year-on-year to ₹1.22 lakh crore. According to reports from PTI, this growth was primarily driven by strong expansion in the bank's lending portfolio. The private sector lender's gross advances registered 27% year-on-year growth to ₹57,306 crore, reflecting the bank's continued focus on expanding its lending activities and portfolio diversification. As per The Economic Times, the bank reported total business of ₹1,21,715 crore as of June 30, 2026, marking a strong 23.04% increase from ₹98,923 crore in the same period last year, with sequential growth of 5.76% from ₹1,15,091 crore in the March 2026 quarter. The bank has confirmed that these figures are provisional and subject to limited review by its statutory central auditors.
The bank demonstrated healthy deposit mobilisation during the quarter, with total deposits growing 19.7% year-on-year to ₹64,409 crore. As reported by PTI, this growth in deposits supported the overall business expansion and provided the foundation for the bank's lending activities. According to The Economic Times, deposits climbed to ₹64,409 crore, compared to ₹53,803 crore a year earlier, registering a 19.71% YoY growth, with deposits also rising 4.37% quarter-on-quarter from ₹61,712 crore. The strong deposit growth indicates effective customer acquisition and retention strategies implemented by the institution.
The bank's CASA (Current Account and Savings Account) deposits showed a divergent short-term trend, with balances increasing 16.94% year-on-year to ₹16,852 crore but declining 2.95% sequentially from ₹17,365 crore in the previous quarter. As reported by The Economic Times, this suggests a mild shift in deposit mix in the near term, despite strong annual growth in low-cost funds. The divergent trend indicates that while the bank maintains strong annual CASA growth, there may be some short-term adjustments in the deposit composition.
According to reports from PTI, Tamilnad Mercantile Bank is implementing a significant workforce transformation strategy. Managing Director and CEO Salee S Nair announced plans to repurpose more than half of the bank's staff towards sales roles as part of a shift from maintaining traditional customer relationships to revenue generation. The bank expects to increase overall employee count by over 200 from the current strength of 5,000, with training programs planned for the new sales roles.
The bank's strong Q1FY27 performance has been well-received by the market, with Tamilnad Mercantile Bank shares rising 2.55% to ₹748.95 following the business update release. As reported by Business Standard, the stock has delivered a remarkable rally of around 65% over the past year, with the current market capitalisation standing at approximately ₹11,582 crore. The technical indicators show a 14-day RSI of 46.9, indicating neutral momentum, while the stock trades above 6 out of 8 key simple moving averages, suggesting an overall bullish undertone. Institutional interest has also improved, with Foreign Portfolio Investors (FPIs) increasing their holding from 4.95% to 6.19% in the March 2026 quarter, while mutual funds began building positions with a 0.35% stake.
